Austin-based private equity firm Vista Equity Partners is one step closer to acquiring Canadian financial services provider DH Corp., in a deal valuing the company at $2.03 billion.
DH Corp stockholders will receive CAD 25.50 per share of common stock in cash. This represents a 11 percent premium to DH Corp’s average closing share price on Friday, and 36 percent above where shares closed over the last 90 trading days.
Vista’s acquisitions often focus on software, data, and technology-enabled businesses. The business being sold makes software with varied uses but caters mainly to lenders, credit unions, governments and corporations.
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The company’s stock has been on a roller-coaster ride since rumors surfaced that it was exploring strategic alternatives. Moreover, DH Corp has recently completed a series of acquisitions, including a $1.25 billion purchase of payment-technology provider Fundtech Ltd. in 2015.
Founded in 2000, Vista Equity specializes in software investments, especially in B2B companies. It has offices in Austin, Chicago and San Francisco and the company is led by billionaire CEO Robert Smith.
Vista says it will merge DH with Misys to create a global business that generates more than $2.2 billion in revenues, with approximately 9,000 customers across 130 countries.
Vista is known for implementing the ‘Vista playbook’ after acquiring companies. This strategy often includes cutting expenses, providing hands-on management of hiring and other practices, as well as moving some functions to cheaper off-shore alternatives.